Vodafone is reportedly in talks with Tesco to acquire the supermarket chain's Blinkbox service.

The two parties are close to reaching a deal for the movie and TV platform, which the retailer could be willing to offload at a cut price, Digital Spy said citing The Telegraph.

Reports suggest that Tesco has been seeking a buyer for Blinkbox for some time, with the service racking up a deficit of $29 million during the firm's latest earnings call.

The news follows confirmation that Vodafone is entering the paid TV and broadband businesses, ambitions that could be bolstered by the proposed Blinkbox buyout.

Blinkbox offers a range of movie and TV content for purchase and rental, but does not include a subscription option like Netflix and Amazon Prime Instant Video.

Tesco also operates a Blinkbox Music service, but it is unclear whether Vodafone is set to acquire that as part of the deal.